Chinese shares plunged 6.32 percent on Monday amid concerns over economic slowdown and following slump on the Hong Kong market.

The benchmark Shanghai Composite Index dropped 6.32 percent, or 116.27 points, to close at 1,723.35. The Shenzhen index slid 6.89 percent, or 424.14 points, to close at 5,734.81 points.

The combined turnover was about 47.18 billion yuan (6.9 billion U.S. dollars), compared with the previous trading day's 44 billion yuan. Losses outnumbered gains by 842-28 in Shanghai and 723-23 in Shenzhen.

The stocks broke the 1800-point mark to 1795.54 points and hit the two year low three minutes after the opening at 9:30 on Monday.

The Shanghai Composite Index opened at 1809.22 points, down 30.4 points or 1.65 percent from the previous closing. The index then continued to fall and hit 1795.54 points, the lowest level since Oct. 24 of 2006 when the index closed at 1805.18.

The smaller Shenzhen Component Index opened 6037.54 points, down 121.41 points or 2 percent from the previous closing 6158.95 points.

Monday's fall came one day after the country scrapped the tax levied on the interest income of individual stock account balance.

The Ministry of Finance said on Sunday the decision, effective Oct. 9, aimed at maintaining a stable and healthy development of the capital market.

(Xinhua News Agency October 27, 2008)